ECONOMIST: The Fed is never going to raise rates

Job growth was less than expected, the unemployment rate was
unchanged, wages disappointed, revisions to August's report were
bad, and the participation rate fell to a new 38-year-low.

And following this news, Chris Rupkey, chief financial economist
at MUFG and one of the most bullish strategists on Wall Street,
has thrown in the towel on the Fed raising rates in 2015 — and
maybe ever — while also tossing out the idea that the US
economy can be the engine that powers a faltering world
economy.

In an email blast following Friday's report, Rupkey wrote that
"rates will never go up again."

"The jobs market struck out in September as far as the Fed's
concerned," Rupkey wrote on Friday. "No rate hike in October
now certainly, and 2015 looks increasingly impossible. If the
Committee was looking for more improvement this isn't it."

Rupkey added:

"We are reassessing our Fed call for December at the moment.
The idea the U.S. economy could power forward while the
rest of the world is stalling out, that idea can be put in the
garage bin. The biggest engine for world growth looks to be
sputtering here, and interest rates are unlikely to be
the first in the world to come off of the zero bound."

And so not only was the jobs report a disappointment, but enough
for Rupkey to sound the alarm on the overall health of the US
economy.

The latest jobs number, however, looks, in the eyes of at least
some strategists, to be putting this idea — that the US consumer
can power not just the US economy but a faltering global economy
— in doubt.

As for the Fed, this report seems likely to keep them on hold
through year-end.

Following Friday's report, the futures market was implying a
roughly 52% chance of the Fed raising rates in March 2016.